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The ABC of NFC Payment

Our civilization owes a lot to the Star Wars franchise for introducing some of the most sophisticated technologies humanity has ever known. Game-changing innovations like hyperspace travel, carbonite freezing, cybernetics, and the light saber – just to name a few – have singlehandedly helped shape the future that we are all now living in.

A long time ago, far, far back in 1997, an early-patented NFC technology was employed by Hasbro, Inc. to allow Star Wars action figure toys to “communicate” with one another. Today, NFC offers smartphone users the ability to complete faster, more secure transactions and conveniently access loyalty rewards simply by tapping or bringing their mobile devices within close proximity of an NFC-enabled point-of-sale reader.

Unlike many of the aforementioned space-age achievements, employing NFC to make mobile payments isn’t necessarily a complicated process, although it may not be as intuitive as using the Force. So to help you gain a better understanding of the basics of near field communication and its application for making and accepting mobile payments, we’ve put together a short guide to help you navigate its protocol.

The mobile wallet

Near field communication is enabled by mobile device software or an NFC chip incorporated into the device, which transfers payment credential information or other stored data from the device to an NFC reader. This secure communication channel can facilitate payment transactions as well as other practical uses like reading payment cards, transit passes, event and travel tickets, room keys, and more.

To enable NFC payments to be made from their devices, consumers load their personal credit or debit card information into a downloaded mobile app, effectively transitioning the physical card into digital form. These payment apps – or mobile wallets – include popular mobile payment solutions like Apple Pay and Android Pay, and now include banking institutions such as Wells Fargo (Wells Fargo Wallet) and large retail enterprises like Walmart (Walmart Pay).

As one of the most secure ways to make a transaction, the mobile wallet’s NFC technology creates an effective barrier against fraud. NFC mobile payments are dynamically encrypted, meaning a cardholder’s payment data is converted to an indecipherable code with each use, preventing hacking and cases of fraud. In addition to the built in security features of a mobile wallet, the user’s mobile device includes its own security features. Features like fingerprint touch ID, six-digit passcode, and the device’s chip help protect its user far beyond the basic PIN and signature authentications of the traditional payment card.

Adding just one more dimension to the versatility of the mobile wallet, many apps also incorporate user-enabled card control features that facilitate account management. Offering real-time insight into every step of the transaction, users can track card use and monitor pending payments, as well as set spending limits, receive and archive receipts, access card rewards, and even “turn off” their cards in the case of detected fraudulent use.

Using your mobile wallet

Secure, quick, and convenient, adding a mobile wallet to your mobile device is a relatively simple process. Follow these steps to set up your smartphone to complete NFC proximity payments.

Download a mobile wallet onto your device.
Though some may come included on your smartphone, others can be specific to your device (Android Pay or Apple Pay), or specific to your personal bank, credit union, or card issuer. There are many different payment apps available – so choose one (or more) with the usability and features that are right for your spending habits and needs.

Add your card information to the mobile walletapp.
The app you choose will guide you through a simple setup process, prompting you to securely include card information and a security method such as password, PIN, or fingerprint recognition.

Start using your mobile wallet.
You’re ready to go. However, using your mobile wallet to make payments, you’ll first need to be sure the point-of-sale terminal is enabled to accept NFC transactions. Many updated payment terminals that can process EMV chip cards are built to be compatible with NFC payment types.

Now all you have to do to make a mobile payments is:

Unlock your mobile device to access your mobile wallet apps.

Select the app or particular card you’d like to use to make the payment.

Tap, hold, or wave your device to the terminal reader until the payment is accepted.

If you’re interested in a more secure, unified, and convenient way to pay, NFC really is the payment type you’re looking for. Contact Vantiv for card payment technology and get started implementing NFC in your business.

If you’re interested in a more secure, unified, and convenient way to pay, NFC really is the payment type you’re looking for. Contact Vantiv for card payment technology and get started implementing NFC in your business.